Global Business Essay

Today 6e by Charles W. L. hummock Chapter 1 globalisation Introduction In the world economy today, we see fewer self-contained bailiwick economies with high barriers to cross-border trade and investment a more corporate global economic system with land barriers to trade and investment about $4 trillion in foreign exchange transactions winning place everyday (in 2012) over $18. 2 trillion of goods and some $3. 5 trillion of services macrocosm sold across national borders the establishment of international institutions ttp//www. ge. com/ http//www. ikea. com/ Chapter 1 Globalization Effects of globalization roll in the hay be seen everywhere the cars people drive the food people eat the jobs where people work the uniform people wear Chapter 1 Globalization WHAT IS GLOBALIZATION? Globalization refers to the shift towards a more integrated and interdependent world economy. Two key facets the globalization of markets the globalization of production Chapter 1 Globaliz ation The Globalization of Markets /14/2013 1 7 8 9 Globalization of markets the fact that in many a(prenominal) industries historically distinct and separate national markets are merging into one huge global marketplace in which the tastes and preferences of consumers in different nations are beginning to converge upon some global norm. Examples Smart Phones (iPhone, Android, etc. ) + Apps Coca-Cola/ Starbucks- McDonalds hamburgers Apple iPad/ Samsung Tablet- IKEA furniture Chapter 1 Globalization The Globalization of ProductionGlobalization of production the tendency among many firms to source goods and services from different locations around the globe to take advantage of national differences in the toll and quality of factors of production (such as land, labor, capital, and energy), thereby allowing them to compete more effectively against their rivals. Exampleshttp//www. vizio. com/ BoeingLenovoVizio (B787 65% outsourced) (design US case, keyboard, HD Thailand http//www. oeing. com/newairplane/display, entrepot S. Korea Wi-Fi Malaysia assy Mex. ) http//www. lenovo. com/planetwide/select/selector. html Chapter 1 Globalization THE EMERGENCE OF GLOBAL INSTITUTIONS Global institutions support manage, regulate, and police the global market place promote the establishment of multinational treaties to govern the global assembly line system General Agreement on Tariffs and Trade (GATT) after WWII Chapter 1 Globalization 2/14/2013 2